MRC -- Phillips 66’ third-quarter chemicals earnings slumped year on year and quarter on quarter on the back of lower margins, despite capacity utilisation for the division averaging 99% during the period for olefins and polyolefins, the firm said.
Chemicals earnings – derived from the firm’s stake in joint venture company CP Chem -fell on the back of weaker margin during the quarter, partially offset by higher volumes. Second-quarter 2022 division income stood at $192m.
Refining income firmed compared to the second quarter of the year as margins firmed in the wake of stronger commodity pricing, but fell by nearly $1.2bn year on year.
The company still expects a 1bn pound/year (454,000 tonne/year) propylene splitter to come on stream in the fourth quarter, while a project in Ras Laffan, Qatar, secured funding in October.
“CPChem continues to pursue a portfolio of high-return growth projects. CPChem and QatarEnergy are building joint-venture petrochemical facilities on the US Gulf Coast and in Ras Laffan, Qatar,” the company said.
“On the US Gulf Coast, the Golden Triangle Polymers (GTP) facility will include a 4.6 billion pounds per year ethane cracker and two high-density polyethylene units with a combined capacity of 4.4 billion pounds per year.” It added.
We remind, US bioplastics company Danimer Scientific is expanding its collaboration with Chevron Phillips Chemical (CPChem). The collaboration will now include application development for Rinnovo polymers, which is a type of polyhydroxyalkanoate (PHA) synthesised from lactones produced using Danimer’s proprietary catalyst technology.